CALLS to legalise the sale of all drugs - including heroin - by the Liberal Democrat Euro MP who represents Macclesfield have been rejected by the Home Office.

Chris Davies, who represents the North West in the European Parliament, says that creating a regulated market is the only way of stopping drug money going into "the pockets of criminals and funding terrorist activities".

His views are in direct opposition to his party leadership, which opposes legalisation and the Home Office rejected his call, claiming the move would lead to a "significant" increase in drug use.

But Mr Davies, who was once arrested while protesting in support of Stockport "cannabis cafe" owner Colin Davies, denied his policy would be a green light to people to take more dangerous and addictive drugs.

He said making the drugs illegal simply allows criminals to make millions by supplying them, leaving the taxpayer a huge bill for keeping users and suppliers in jail - cash he says would be better spent on rehabilitation.

Mr Davies said: "Taking a small percentage of the drugs off the market simply forces up the price, adding to the already vast profits made by the traffickers and providing a stronger financial incentive for others to get involved. It's a vicious circle.

"Far from preventing the use of illegal drugs, prohibition creates the profits which drive the growth of the trade.

"It leads to the corruption of our institutions and provides funds for terrorism.

"Taken in excessive quantities, all drugs are dangerous and no one wants a free for all, but many of the problems stem directly from the criminality involved.

"At present, drug users can never be entirely sure what they are putting in their bodies."

But the Lib Dems have distanced themselves from Mr Davies' comments. A spokesman said: "This is certainly not a party policy."

A Home Office spokesman said: "The Government has no intention of legalising the recreational use of any currently-controlled drug. While our drug laws cannot be expected to eliminate drug misuse, there is no doubt that they do help to limit use and deter experimentation."